Certified Public Accountancy Firms
Purpose:
A person or firm is required to obtain a public accounting firm permit with the Department if the person or firm:
- Engages in the practice of public accountancy in Connecticut;
- Assumes or uses any of the following title or designation: "Certified Public Accountant," “certified accountant,” “certified professional accountant,” “chartered accountant,” “enrolled accountant,” “licensed accountant,” “registered accountant,” “accredited accountant,” or any other title or designation likely to be confused with the titles “certified public accountant” or “public accountant” or use any of the abbreviations “CA”, “EA”, “LA”, “RA”, “AA” or similar abbreviation likely to be confused with the abbreviations “CPA” or “PA”, or the designation "CPA" or the words "Public Accountant" or the designation "PA" in the firm name (Note: persons designated as “enrolled agents” of the Internal Revenue Service may use the title or the abbreviation “EA”);
- Assumes or uses any title or designation that includes the words “accountant,” “auditor” or “accounting” in connection with any other language, including the language of a report, that implies that such person or firm holds a firm permit or has special competence as an accountant or auditor; or
- Provides any attest or compilation services to Connecticut clients; or
- Registers as a professional entity to offer public accountancy services or office of certified public accountants.
Exceptions:
A firm permit is not required of:
- Any person who fits category (1), (2) or (3) above but who is qualified for the practice privilege (i.e., licensed in another state with no office in Connecticut); or
- Any employees or members of a firm that has an active public accounting firm permit.
Prerequisites:
A person or firm may practice public accountancy only in proprietorship, a partnership or a professional corporation, organized in accordance with chapter 594a of the Connecticut General Statutes, or other public or private entity, organized or existing under the laws of this state or any other state, or the federal government, including any federal corporation, or foreign entity.
A firm name may not be misleading. A misleading firm name is one which contains any representation that would be likely to cause a reasonable person to misunderstand or be confused about the legal form of the firm, or about who the owners or members of the firm are or about any other matter, such as a reference to a type of organization or an abbreviation thereof which does not accurately reflect the form under which the firm is organized (e.g., implies the existence of a corporation when the firm is not a corporation).
The names of one or more past partners, shareholders, or members may be included in the firm name of a partnership, corporation, limited liability company, or its successor. A partner, shareholder, or member surviving the death or withdrawal of all other partners, shareholders, or members may continue to practice under a firm name which includes the names of past partners, shareholders, or members for up to two years after becoming a sole proprietor.
Ownership Requirements:
Each firm is required to show that:
- a simple majority (at least 51%) of the ownership of the firm, in terms of the financial interests and voting rights of all proprietors, partners, members or shareholders of such firm, belongs to individuals holding a valid license to practice public accountancy issued by the licensing authority of a state or territory of the United States; and
- each proprietor, partner, member or shareholder is (A) a natural person who actively participates in the business of the firm or its affiliated entities, or (B) an entity, including, but not limited to, a partnership or professional corporation, provided each beneficial owner of an equity interest in such entity is a natural person who actively participates in the business conducted by the firm or its affiliated entities. “Actively participate” means to provide client services or to take part in the business or management of the firm.
Partners and Shareholders
- List the name and Connecticut individual CPA license number of the proprietors, partners or shareholders whose principal place of business is in Connecticut, who performs professional services in Connecticut and who works in Connecticut.
- Both applicants for and holders of a Firm Permit to Practice must notify the Board in writing, within thirty days when any change occurs in the identities of any partners or shareholders working in Connecticut.
- If the individual CPA license is being applied for simultaneously, please write application pending in the space provided.
Applications and Forms
- Initial Application - OR
- Out-of-State Firm Permit
- Reinstatement, Name Change, Termination of Permit - Firm Permit Change Application
- Quality Review Reschedule and Waiver Form
Renewal:
- All firm registrations expire annually on December 31st.
- For a firm of one (1) CPA who holds a CPA license there is no renewal fee required.
- For a firm comprised of more than one (1) CPA there is a $150.00 renewal fee.
Reinstatement:
A firm may qualify for reinstatement, if the primary licensee has not practiced public accountancy and has not used the professional designation while the firm was inactive.
Additional Information
Email address for licensing inquiries DCP.LicenseCPA@ct.gov